CVS HEALTH Corp SEC 10-Q Report

CVS Health Corp, a leading diversified health services company, has released its Form 10-Q report for the third quarter, providing a comprehensive overview of its financial and operational performance. The report highlights the company's revenue growth, operational challenges, and strategic shifts in its business segments.

Financial Highlights

CVS Health Corp reported the following key financial metrics for the third quarter:

• Total Revenues: $98,915 million, reflecting a growth driven by increased product sales and premiums.
• Operating Income: $2,381 million, indicating a decrease compared to the previous year due to higher operating costs.
• Net Income: $1,013 million, showing a decline from the prior year, impacted by increased interest expenses.
• Net Income Attributable to CVS Health: $1,021 million, with a slight decrease in profitability.
• Basic Net Income Per Share: $0.81, reflecting the impact of reduced net income.
• Diluted Net Income Per Share: $0.80, consistent with the basic earnings per share, indicating minimal dilution.

Business Highlights

The report also detailed the operational performance and strategic initiatives across CVS Health Corp's various business segments:

• Health Care Benefits Segment: This segment operates as a leading diversified health care benefits provider through its Aetna operations, offering a broad range of traditional, voluntary, and consumer-directed health insurance products and related services. This includes medical, pharmacy, dental, and behavioral health plans, as well as Medicare Advantage and Medicare Supplement plans. The segment primarily serves employer groups, government-sponsored plans, and individual consumers.
• Health Services Segment: This segment provides a full range of pharmacy benefit management solutions through CVS Caremark operations, including plan design offerings, formulary management, and specialty and mail order pharmacy services. It also delivers health care services in medical clinics, virtually, and in the home. The segment's health care delivery assets include Signify Health and Oak Street Health, focusing on health risk assessments and value-based care.
• Pharmacy & Consumer Wellness Segment: The segment dispenses prescriptions through CVS Pharmacy retail locations and infusion operations, provides ancillary pharmacy services, and sells a wide assortment of health and wellness products. It also conducts long-term care pharmacy operations and supports specialty and mail order pharmacy offerings.
• Corporate/Other Segment: This segment includes management and administrative expenses to support overall operations, such as executive management, legal, compliance, and finance departments. It also includes products for which the company no longer solicits new customers, like large case pensions and long-term care insurance products.
• ACO REACH and MSSP Exit: The company decided to substantially exit the ACO REACH program and the Medicare Shared Savings Program in the first quarter of 2025, incurring costs related to winding down these operations.
• Future Outlook: The company plans to exit the states in which Aetna operates on the individual public health insurance exchanges effective January 2026, indicating a strategic shift in its health insurance offerings.

SEC Filing: CVS HEALTH Corp [ CVS ] - 10-Q - Jul. 31, 2025